Department of Accounting, 2007

Abstract

This research is a descriptive qualitative research in Jakarta Stock Exchange Corner with the title ?The Influence of Capital Structure to Rentability on the LQ 45 Index. The aim of this research to know how capital structure and rentability also the influence it on LQ 45 Index. This analysis use double linier regression. From the research can be know that capital structure and rentability the companies. The LQ 45 Index companies generally have Debt to Asset Ratio rate under standard or less than 100%, except PT Astra Agro Lestari Tbk. The highest DAR is PT Astra Agro Lestari Tbk, and the lowest DAR is PT Energi Mega Persada Tbk. The LQ 45 Index companies generally have Debt to Equity Ratio rate under standard. . The highest DER is PT Bumi Resources Tbk, and the lowest DER is PT Panin Life Tbk. Beside it also be gotten report of Self Capital Rentability positively. The highest SCR is PT Indosat Tbk, and the lowest SCR is PT Kawasan Industri Jababeka Tbk. From the regression report be knows that DAR and DER variable don?t influence to ROE simultantly. While partially DAR and DER variable also don?t influence to ROE. Regression report show determination coefficients is low and the others are influence by the others variable that is not belong in this research.